3 Stocks Pushing The Consumer Durables Industry Lower

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The Consumer Durables industry as a whole was unchanged today versus the S&P 500, which was down 0.4%. Laggards within the Consumer Durables industry included Natuzzi SPA ( NTZ), down 10.3%, Gaming Partners International ( GPIC), down 3.8%, Acme United ( ACU), down 2.0%, Energy Focus ( EFOI), down 2.9% and Vapor ( VPCO), down 2.9%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Acme United ( ACU) is one of the companies that pushed the Consumer Durables industry lower today. Acme United was down $0.39 (2.0%) to $18.73 on heavy volume. Throughout the day, 34,574 shares of Acme United exchanged hands as compared to its average daily volume of 5,100 shares. The stock ranged in price between $18.30-$19.04 after having opened the day at $18.98 as compared to the previous trading day's close of $19.12.

Acme United Corporation, together with its subsidiaries, supplies cutting, measuring, and first aid products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and Asia. Acme United has a market cap of $61.4 million and is part of the consumer goods sector. Shares are down 6.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Acme United a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Acme United as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on ACU go as follows:

  • The revenue growth came in higher than the industry average of 8.1%. Since the same quarter one year prior, revenues rose by 35.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ACU has a quick ratio of 2.04, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 30.20% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ACU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ACME UNITED CORP has improved earnings per share by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ACME UNITED CORP increased its bottom line by earning $1.22 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.36 versus $1.22).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Services & Supplies industry average. The net income increased by 24.0% when compared to the same quarter one year prior, going from $0.96 million to $1.19 million.

You can view the full analysis from the report here: Acme United Ratings Report

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At the close, Gaming Partners International ( GPIC) was down $0.33 (3.8%) to $8.28 on light volume. Throughout the day, 3,301 shares of Gaming Partners International exchanged hands as compared to its average daily volume of 9,900 shares. The stock ranged in price between $8.28-$8.46 after having opened the day at $8.46 as compared to the previous trading day's close of $8.61.

Gaming Partners International Corporation, together with its subsidiaries, manufactures and supplies casino table game equipment to licensed casinos worldwide. Gaming Partners International has a market cap of $68.9 million and is part of the consumer goods sector. Shares are up 0.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Gaming Partners International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on GPIC go as follows:

  • The revenue growth greatly exceeded the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 49.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GPIC's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 3195.2% when compared to the same quarter one year prior, rising from $0.08 million to $2.77 million.
  • Net operating cash flow has significantly increased by 161.66% to $0.34 million when compared to the same quarter last year. In addition, GAMING PARTNERS INTL CORP has also vastly surpassed the industry average cash flow growth rate of -31.28%.
  • 37.70% is the gross profit margin for GAMING PARTNERS INTL CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 13.66% trails the industry average.

You can view the full analysis from the report here: Gaming Partners International Ratings Report

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Natuzzi SPA ( NTZ) was another company that pushed the Consumer Durables industry lower today. Natuzzi SPA was down $0.18 (10.3%) to $1.56 on light volume. Throughout the day, 1,550 shares of Natuzzi SPA exchanged hands as compared to its average daily volume of 5,000 shares. The stock ranged in price between $1.56-$1.69 after having opened the day at $1.69 as compared to the previous trading day's close of $1.74.

Natuzzi S.p.A. designs, manufactures, and markets leather and fabric upholstered furniture worldwide. Natuzzi SPA has a market cap of $97.6 million and is part of the consumer goods sector. Shares are up 12.3% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Natuzzi SPA as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on NTZ go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Household Durables industry and the overall market, NATUZZI SPA's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NATUZZI SPA is currently lower than what is desirable, coming in at 30.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -7.81% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$28.70 million or 586.21% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • NTZ's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.91%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • NATUZZI SPA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, NATUZZI SPA reported poor results of -$1.71 versus -$0.63 in the prior year.

You can view the full analysis from the report here: Natuzzi SPA Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.